Line 314 - Ecological gifts
Line 314 - Ecological gifts
Complete Part 4 of Schedule 2 if, during the tax year, one of the following occurred:
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you made certified ecological gifts
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the ecological gifts were transferred from a predecessor corporation after amalgamation, or from a subsidiary corporation after wind-up
You can claim a deduction from net income for certified ecological gifts made to:
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Canada, a province, or a territory
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an approved Canadian municipality or municipal or public body performing a function of government in Canada
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an approved registered charity (other than a private foundation)
An ecological gift is a gift of land (including a covenant, an easement, or, in the case of land in Quebec, a personal servitude that runs for at least 100 years or a real servitude) that is certified by the minister of Environment and Climate Change (ECC) as ecologically sensitive.
The eligible amount of a gift of ecologically sensitive land and, consequently, the corporate donor's proceeds of disposition are considered to be the amount determined by the minister of ECC.
Ecologically sensitive land must be protected and should not be used for other purposes. A tax of 50% of the fair market value of the land will be charged to recipients who change the use of the land or dispose of it without the consent of the minister of ECC.
The maximum deduction you can claim is the total of ecological gifts made during the current tax year plus the unclaimed ecological gifts from the 10 previous tax years, if the gift was made on or after February 11, 2014.
If the amount of ecological gifts is more than your net income for the year minus any other donations you claim, you can carry the excess forward for up to 10 years.
Note
On line 555 of Schedule 2, enter the amount of any other
adjustments (these adjustments would apply to
corporations that have undergone an acquisition of
control and whose donations carryforward amounts that
built up before the acquisition of control are not
deductible after the acquisition of control).
Deduct ecological gifts in the order they were made (first-in, first-out rule).
On line 314, enter the amount of ecological gifts you want to deduct in calculating taxable income.
Complete Part 6 of Schedule 2 to establish the continuity of ecological gifts.
For an ecological gift, you must get a certificate issued by the minister of ECC and a Certificate for Donation of Ecologically Sensitive Land. The qualified donee will issue a receipt. You do not have to file the receipt or the two certificates with your return. However, keep them in case the CRA asks for them later.
References
Paragraph 110.1(1)(d)
Subsections 110.1(5), 110.1(1.1), and 248(31)
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